CIN-CENVAT Adjustment Postings

CENVAT Adjustment Postings

Use

You use these functions if you need to make an adjustment posting to any of your CENVAT accounts. You can make adjustment postings to account for:

* Scrap
* Materials that you have not used in production
* Additional excise paid by vendors
* Money that you have transferred to your personal ledger account
* Other transactions

You can also use this function to cancel excise invoices.

Features

Each of the different types of adjustment postings are documented separately. However, they all work on the same principle, as follows.

Reference Document

On the initial screen of the transaction, you specify the reference document, that is, the document which the adjustment posting is to refer to – either an internal document, such as a material document or a subcontracting challan – or an external document, such as an incoming excise invoice.

You also specify which registers are affected by the posting. In many cases, the adjustment will have to be remitted to the authorities on a fortnightly basis. The adjustment will then be included when you run the Remittance of Excise Duty Fortnightly report. If the adjustment has to be remitted immediately, you specify which register is affected.

Excise Details

When you proceed to the detail screen, the system automatically shows the line items from the reference document, if it is an internal document. You specify how much excise duty is to be adjusted and which CENVAT accounts the adjustment posting is to be made to.

When you edit the excise details, there are a number of functions that are available, depending on the type of adjustment posting:

* Assigning excise invoice to line items
* Specifying which G/L accounts are to be adjusted
* Displaying balances of CENVAT accounts

When you save your changes, the system creates an accounting document to make the appropriate postings.